Government, Private Hospitals, and Insurers Collaborate to Control Medical Costs and Improve Price Transparency
Deputy Finance Minister Lim Hui Ying has revealed that the government, private hospitals, and insurance companies are working together to find a long-term solution to control medical costs and improve price transparency. This initiative is in response to the concerns raised by patients using guarantee letters for private hospital treatment, who may be facing higher costs compared to those who pay upfront and claim reimbursement later.
Concerns Over Treatment Charges
According to Lim, the analysis of private hospital billing claims submitted to insurance companies and takaful operators (ITO) suggests that patients using guarantee letters may be facing higher costs. "Since the treatment charges imposed are less transparent, a more detailed study is required to better understand this issue and determine the appropriate follow-up measures," she said during a question-and-answer session in the Dewan Rakyat.
Understanding the Issue
A guarantee letter is a document issued by an insurance company or employer to a hospital or medical provider, guaranteeing payment for a patient’s treatment. Lim acknowledged that the government is aware of the concerns raised during recent public hearing sessions by the Public Accounts Committee (PAC). She emphasized the need for a more detailed study to understand the issue and determine the appropriate follow-up measures.
Collaborative Efforts
The government, in collaboration with the finance ministry, private hospitals, and ITOs, is working to find a long-term solution to the issue of rising medical costs and private hospital charges. This includes enhancing the transparency of medication costs and facilitating comparisons of common medical expenses. An integrated action plan was presented to PAC yesterday, highlighting the collaborative efforts to address the issue.
Commonly Claimed Illnesses
Initial findings from the integrated claims database of the ITO industry showed high claim rates for certain illnesses in 2023 under medical and health insurance and takaful. The most commonly claimed illnesses were pneumonia, spinal issues, digestive system disorders, and heart disease.
Conclusion
The government, private hospitals, and insurance companies are working together to address the concerns raised by patients using guarantee letters for private hospital treatment. By enhancing transparency and facilitating comparisons of common medical expenses, the initiative aims to improve price transparency and control medical costs. Patients can expect a more detailed study to better understand the issue and determine the appropriate follow-up measures.
Frequently Asked Questions
- What is a guarantee letter?
A guarantee letter is a document issued by an insurance company or employer to a hospital or medical provider, guaranteeing payment for a patient’s treatment. - What are the concerns with treatment charges?
Patients using guarantee letters may be facing higher costs compared to those who pay upfront and claim reimbursement later. - What is the government doing to address the issue?
The government, private hospitals, and insurance companies are working together to find a long-term solution to control medical costs and improve price transparency. - What are the most commonly claimed illnesses under medical and health insurance and takaful?
The most commonly claimed illnesses were pneumonia, spinal issues, digestive system disorders, and heart disease.